Wall Street Reform Passes the Senate
On a vote of 59 to 39, the Senate passed its financial regulatory reform bill last night, marking a major step toward restoring accountability on Wall Street and protecting the American economy and consumers.
Jim Himes, as a member of the House Financial Services Committee, helped author and pass a similar, strong financial regulatory reform bill in the House. That bill, the Wall Street Reform and Consumer Protection Act, along with the Senate's bill, will now go to a conference committee to compose a merged final bill.
Wall Street reform legislation will restore accountability, increase transparency in the markets, and protect the American economy and consumers. It was a weakened financial regulatory system and irresponsible mismanagement under the previous Administration that were major factors in the financial crisis that led to the worst economic downturn since the 1930s. A strong, workable regulatory system will help the financial sector support sustainable economic growth and the jobs America needs. It will also end taxpayer bailouts of failing private firms and protect consumers from predatory and deceptive practices by lenders, brokers and credit card companies.
Here's a sample of some of the early reporting following the Senate's action:
The Senate Thursday night passed the most sweeping changes in government regulation of the nation's financial institutions since the Great Depression, including strong new consumer and investor protections and provisions that seek to shine a bright light on the dark corners of Wall Street.
In a 59-39 vote, four Republicans joined 53 Democrats and two independents in approving the Restoring American Financial Stability Act of 2010.
The House of Representatives passed a similar version, the Wall Street Reform and Consumer Protection Act of 2009, six months ago. The two bills must now be reconciled in negotiations between the two chambers, passed anew by each and sent to President Barack Obama for his signature, which is expected by July 4.
"Our goal is not to punish the banks, but to protect the larger economy and the American people," Obama said Thursday.
"If you've ever applied for a credit card, a student loan, or a mortgage, you know the feeling of signing your name to pages of barely understandable fine print," Obama said Thursday. "It's a big step for most families, but one that's often filled with unnecessary confusion and apprehension. As a result, many Americans are simply duped into hidden fees and loans they just can't afford by companies that know exactly what they're doing."
The Senate voted 59 to 39 on Thursday night to pass a far-reaching financial regulatory bill, putting Congress on the brink of approving a broad expansion of government oversight of the increasingly complex banking industry and financial markets, David M. Herszenhorn of The New York Times reports from Washington.
The legislation is intended to prevent a repeat of the 2008 crisis, but it also reshapes the roles of numerous federal agencies, and vastly empowers the Federal Reserve, in an attempt to predict and contain future debacles.
Democratic Congressional leaders and the Obama administration must now work to combine the Senate measure with a version approved by the House in December, a process that is expected to take several weeks and be completed after Memorial Day.
While there are important differences — notably a Senate provision that would force big banks to spin off some of their most lucrative derivatives business into separate subsidiaries — the bills are broadly similar, making it virtually certain that Congress will adopt the most sweeping regulatory overhaul since the aftermath of the Great Depression.
President Obama, speaking in the Rose Garden on Thursday afternoon, declared victory over the financial industry and “hordes of lobbyists” that he said had tried to kill the legislation.“The recession we’re emerging from was primarily caused by a lack of responsibility and accountability from Wall Street to Washington,” Mr. Obama said. “That’s why I made passage of Wall Street reform one of my top priorities as president, so that a crisis like this does not happen again.”
After a tense afternoon of votes stretched into the evening, the Senate passed its financial reform legislation, setting the stage for negotiations with the House to craft a final package that will be voted on once more by both chambers before arriving on President Obama's desk.
After the Democrats, joined by three Republicans, successfully overcame efforts to block a vote on the bill in the afternoon, 30 hours were allotted before final passage -- unless Republicans could be convinced to dispense with the debate and any additional amendments.
Particularly at stake was an amendment from Sam Brownback to exempt auto dealers from consumer regulation and another amendment proposed by Senators Merkley and Levin to strengthen a measure already in the bill to limit the kinds of risky business banks can engage in.
While the Merkley-Levin amendment could not be voted on post-cloture due to a technicality, in a clever bit of legislative jujitsu, the two attached their amendment to Brownback's as a second-order amendment, meaning that both would have to be voted on together to enter the bill. Reformers opposed Brownback and supported Merkley-Levin, but could at least see stronger restrictions on Wall Street if Brownback succeeded.
Republicans, however, proved reluctant to force another symbolic vote that would reveal their support of Wall Street. Brownback pulled his amendment, leading to an agreement on how to proceed: After a procedural objection from Republicans that required 60 votes to set aside, voting for final passage began at approximately 8:45. The bill passed 59-39
